Depositors in the five Islamic banks merged into the newly formed Sammilito Islami Bank will receive profits at market rates of up to 9.5 per cent, says the regulator.
But depositors in nine non-bank financial institutions (NBFIs) up for liquidation would receive only their principal amounts -- no interest or profit.
Bangladesh Bank (BB) Governor Dr Ahsan H. Mansur came up Thursday with the latest depositor-compensation packages for the investors in the imperilled banks and nonbanks.
The announcement came at an emergency briefing convened at the BB headquarters amid growing concerns and what the governor described as "rumours and misinformation" surrounding the merged bank.
The governor said the decision applies to savings and deposit accounts with tenure of one year or more. The profit scheme will take effect from January, with profits for the month to be disbursed in February.
The central bank governor said depositors will receive 4.0-percent profit for the years 2024 and 2025, while those whose deposits cannot be immediately repaid will be entitled to up to 9.5 per cent in profit on their savings.
Monthly-scheme accountholders will receive profits on a monthly basis and will be able to withdraw the full profit amount.
He clarifies that profits will be paid gradually, citing liquidity- management concerns.
"If all funds are released at once, it could create financial instability. Like opening a sluice gate all at once causes flooding, deposits must be released in a controlled manner," he explains the critical situation metaphorically.
The governor likens the profit payment to a form of government goodwill, noting that under international norms, depositors of troubled banks having huge financial losses are not necessarily entitled to profits.
Earlier on January 14, Bangladesh Bank had announced a 'haircut' policy under which no profits would be paid for 2024 and 2025. However, following protests and criticisms, the decision was reversed within a week, and a 4.0-percent profit rate was introduced instead.
Mansur states that paying profits at this rate would cost the government approximately Tk 45.0 billion.
The five-in-one Sammilito Islami Bank was formed through the merger of EXIM Bank, First Security Islami Bank, Global Islami Bank, Union Bank, and Social Islami Bank, all of which had faced severe financial stress following loan irregularities of past time.
Dr Mansur, who came to the helm of the central bank after the July-August mass uprising in 2024, also alleged that certain individuals and bankers were deliberately spreading misinformation about the merged bank "in exchange for money".
"Such activities won't be tolerated," the governor warns.
Responding to questions about disturbances at some bank branches in Dhaka and Chattogram, he said the situation was being monitored and law-enforcement assistance would be sought, if necessary.
He also dismissed rumours about his taking extended leave, calling them "completely false".
jubairfe1980@gmail.com